Broker Name: Maybank Investment Bank Berhad
Date of Report: November 11, 2025

Excerpt from Maybank Investment Bank Berhad report.

• Axis REIT has proposed to acquire a freehold industrial property in Seberang Perai Tengah, Penang for MYR800m, strengthening its presence in northern Malaysia and adding an initial gross yield of about 6.2% through an eight-year leaseback to a listed steel company.
• The REIT maintains a robust acquisition pipeline of approximately MYR1.27b, with ongoing and potential deals expected to drive future earnings, though gearing is set to rise above 0.4x, possibly triggering a private placement to preserve balance sheet flexibility.
• Forecasted earnings for FY25–27 have been raised, reflecting lower borrowing costs and new rental income; the DDM-based target price is lifted to MYR2.30, with a maintained BUY rating based on resilient operations, high occupancy (97%), positive rental reversions, and solid growth prospects.
• Axis REIT focuses on industrial/logistics assets in key Malaysian hubs, with a diversified, stable portfolio, long lease terms, and sustainability-linked financing, targeting MYR10b in assets under management by 2030.
• Key risks include slower leasing activity, execution risks from multiple acquisitions, and dilution from potential equity placements to fund growth.

Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website : www.maybank.com/investment-banking